India extends localisation deadline for electric bus and truck traction motors
Change
India extended by six months the localisation deadline under the Prime Minister's E-Drive (PM E-Drive) scheme, permitting electric bus and truck manufacturers to import traction motors with rare earth magnets until September 1.
Why it matters
From September 1, vehicles seeking PM E-Drive incentives must meet a strict domestically completed assembly test for traction motors; imported complete motors will no longer satisfy the scheme's localisation requirement. The Phased Manufacturing Programme (PMP) — a policy that mandates gradual domestic value addition in vehicle components — specifies the motor assembly steps that must be done locally to retain subsidy eligibility.
Implications
- • Procurement teams at electric bus and truck manufacturers must finalise orders and import rare-earth-magnet-equipped traction motors before September 1 — shipments received after that date will not meet the scheme's localisation criteria and may disqualify vehicles from PM E-Drive incentives.
- • Manufacturing and assembly teams at electric bus and truck original equipment manufacturers (OEMs) — companies that build vehicles — must implement and certify magnet fitment, rotor and stator assembly, shaft and bearing fitment, enclosure, connector and cable fitment domestically by September 1 — failure to certify these steps will render their vehicles ineligible for subsidies.
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